PT Newmont clarifies

PT Newmont clarifies

The characterization of the PT Newmont Nusa Tenggara (PT NNT)
tailings pipeline leak that appeared in the Jan. 25, 2001,
edition of The Jakarta Post might lead your readers to believe
that the company is trying to minimize the importance of the
event and has no plan to deal with the problem. Any portrayal of
the events of Jan. 22, 2001, as such is not correct.

The leak that occurred in the tailings pipeline may not have
been large, but it was a serious event that resonates in the
local communities. As such, one of the first actions the company
took when the leak occurred was to gather the leaders from the
local community and take them to the site of the leak so they
could physically see the repairs going on while they received a
briefing on the event. Additionally, the company representatives
held the tailings materials in their hands and demonstrated that
the tailings are nontoxic in order to dispel rumors to the
contrary.

For the benefit of your readers, the fact of the incidents are
as follows. Between 2 p.m. and 2:15 p.m. on Jan. 22, a two-
centimeter wide leak occurred in the tailings pipeline causing
some 10,000 liters of seawater and ground rock (called tailings)
to spill into the pipeline's spill containment area. The leak was
reported shortly after one of the hourly physical checks of the
pipeline that our company conducts. Once spotted, the pipeline
was shut down to facilitates repairs. The repairs were completed
within four hours.

While the leak was not welcomed by PT NNT, it has been
anticipated and planned for. Since conducting line tests after a
similar leak in early November, the company has known that
several lengths of pipe had a defective rubber lining allowing
the seawater inside the pipe to corrode the steel pipes' outer
shell and produce small leaks. PT NNT has ordered replacements
and has been waiting for the manufacturer to ship replacements
for those sections where problems have been identified. All of
the defective sections are in the onshore section of the tailings
pipeline and will be replaced by March, when the new pipe
sections will be delivered by the manufacturer. Until then, the
company will maintain its constant monitoring of the pipeline to
minimize any possible impact of such leaks.

A leak in our tailings line is a serious issue that the
company shared with the communities surrounding the mine so that
they could understand exactly what happened. No doubt there will
be people who seek to take advantage of the incident to twist the
facts and manipulate the emotions of the general public. We hope
that by fully disclosing the details of the leak and the
company's subsequent actions to the local communities and the
general public that we can avoid any confusion or
misrepresentation of the event. We also hope that the public
understands how concerned we are about respecting their rights to
be informed about the functioning of the major development
project operating in their midst.

EDWARD PRESSMAN

Director of Technical Affairs

PT Newmont Pacific Nusantara

Jakarta